Inner city delivers the goods for investors

The public attention paid to geared property in do-it-yourself superannuation gives the impression that funds are falling over themselves to buy real estate. In fact, they are being very controlled.

Although developers, banks, mortgage lenders, financial advisers and various others selling the idea of geared property investing might want more DIY funds to invest in residential property, statistics from the Tax Office suggest involvement by funds in the strategy has so far tended to match growth in the DIY super sector.

Since 2007-08, when they were allowed to borrow to invest in property through limited recourse loans, the percentage of super money being committed to residential property has been steady at between 3 and 4 per cent, says Tim Coates, head of property at Dixon Advisory.

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